Frequently Asked Questions

A fund is a type of collective investment scheme. Investors' capital is pooled together and managed by a professional fund manager, and each investor is issued units in the fund, representing the proportion of the underlying investments they own.

Funds are popular with investors because they offer access to a ready-made investment portfolio run by an expert in their field. You can normally invest from £100 or £25 per month, and get instant access to a diversified portfolio for a much lower cost than purchasing the individual investments yourself.

Once you have opened an account, it is straightforward and secure to place a deal. Please ensure you have read the fund's Key Investor Information Document first which is available from the individual fund factsheets on the website.

3. Choose your investment and deal valueFind your fund online and enter the value you're looking to invest. Alternatively, provide your dealer with these details by telephone. When dealing online, you will also need to enter your trading password.

4. Confirm the dealThe details of the deal will be provided for you to check. Confirm you're happy with the fund name and value to be invested and the deal is done. We will send you a contract note either by post or you can download it online - whichever you prefer.

3. Choose your investment and deal valueChoose the investment you wish to sell and select the deal now button. On the next screen you can tell us how many units you wish to sell. Alternatively, provide your dealer with these details by telephone. When dealing online, you will also need to enter your trading password.

4. Confirm the dealThe details of the deal will be provided for you to check. Confirm you're happy with the fund name and value to be sold and the deal is done. We will send you a contract note either by post or you can download it online - whichever you prefer.

In the past most investors who held funds, such as unit trusts and OEICs, paid a single annual management charge to the manager of their chosen funds. This charge often included an element of commission which the fund manager shared with brokers, such as Hargreaves Lansdown, to help pay for their service. We call these funds 'inclusive' funds.

New FCA rules mean annual management charges of funds purchased after 6 April 2014 do not include commission to help pay for services such as Vantage. As a result of the FCA's new rules, fund management groups have launched new versions of their funds with lower annual management charges. We call these 'unbundled' funds.

The type of unit you hold determines how any income generated from the fund's underlying investments is treated.

With income units, income is paid out to fund holders as cash. This could provide the investor with an income stream or the cash could be reinvested to buy additional units.

With accumulation units income is retained within the fund and reinvested, increasing the price of the units. Generally, for investors who wish to reinvest income, accumulation units offer a more convenient and cost-effective way of doing so.

The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. We aim to provide information and tools to help you make your own informed decisions. If you are unsure about the suitability of an investment please contact us for advice.